SRI GANESH PROPERTIES LIMITED

Executive Summary

SRI GANESH PROPERTIES LIMITED demonstrates a weak financial position with negative net assets and significant liabilities exceeding assets. The company’s micro-entity status and limited trading history increase credit risk, and current financials do not support strong debt servicing capability. Credit facilities are not recommended at this stage without substantial evidence of improved financial strength and liquidity.

SRI GANESH PROPERTIES LIMITED - Analysis Report

Company Number: 14935010

Analysis Date: 2025-07-29 20:26 UTC

1. Credit Opinion: DECLINE
   SRI GANESH PROPERTIES LIMITED is a newly incorporated micro-entity with limited trading history. The latest accounts show net liabilities of £13,358 due to long-term creditors exceeding total assets less current liabilities. Current liabilities are significantly higher than current assets, resulting in a negative net working capital position if creditors falling due after more than one year are considered. The absence of any employees and limited trading history increases uncertainty about the company’s ability to generate sustainable cash flows to service debt or meet obligations. Furthermore, the company’s equity base is minimal, providing little financial buffer.

2. Financial Strength:
   The balance sheet reflects fixed assets of £462,760 and current assets of £183,560. However, the company carries long-term liabilities (creditors falling due after more than one year) of £659,678, leading to negative net assets of £13,358. The minimal shareholders’ funds indicate very weak capitalisation. The negative net assets position is a concern from a credit perspective as it implies the company owes more than it owns. The micro-entity status limits the amount of financial detail available, but the current financial position suggests a weak balance sheet.

3. Cash Flow Assessment:
   Current assets of £183,560 versus current liabilities of £659,678 (including long-term creditors) suggest tight liquidity. The accounts show net current assets of £183,560, but the large long-term creditor balance offsets this, leading to an overall negative net asset position. No employees and no detailed cash flow information are provided, making it difficult to assess operational cash generation. The company’s ability to meet short-term obligations or service debt depends heavily on continued capital injection or asset realisation. There is no indication of any retained earnings or profits.

4. Monitoring Points:

• Monitor changes in net assets and shareholder equity to detect any capital injection or erosion.
• Track liquidity ratios and working capital improvements in subsequent filings.
• Review creditor structure, especially the nature and terms of the significant long-term liabilities.
• Assess trading performance and cash flow generation as future accounts become available.
• Monitor directors’ commitment and any changes in management or ownership control.